Costing

1. Which budget is prepared first of all?

Cash budget
Master budget
Budget for the key factor
Flexible budget

Detailed SolutionWhich budget is prepared first of all?

2. Labour turnover means:

Turnover generated by labour
Rate of change in composition of labour force during a specified period
Either of the above
Both of the above

Detailed SolutionLabour turnover means:

3. Contract costing is most appropriate method of costing for ________.

construction industry
banking industry
textile mills
cement industry

Detailed SolutionContract costing is most appropriate method of costing for ________.

4. Economic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

job
batch
operation
output

Detailed SolutionEconomic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

5. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

annual irrelevant ordering costs
annual relevant carrying costs
annual relevant ordering costs
annual irrelevant carrying costs

Detailed SolutionAn average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

6. In income statement of merchandising costs, period cost includes all costs which are not related to

cost of resale goods
cost of manufacturing goods
timed resale of goods
cost of purchased goods

Detailed SolutionIn income statement of merchandising costs, period cost includes all costs which are not related to

7. A manager who is responsible for only cost of company belongs to

cost center
revenue center
profit center
investment center

Detailed SolutionA manager who is responsible for only cost of company belongs to

8. The process of grouping of costs according to some common characteristics ________.

absorption
primary distribution
secondary distribution
classification

Detailed SolutionThe process of grouping of costs according to some common characteristics ________.

9. . . . . . . . . is the oldest branch of accounting.

Financial accounting
Cost accounting
Management accounting
None of these

Detailed Solution. . . . . . . . is the oldest branch of accounting.

10. Material abstract is also known as . . . . . . . .

material issue analysis sheet
bill of materials
stores ledger
None of the above

Detailed SolutionMaterial abstract is also known as . . . . . . . .

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